Monday, September 30, 2024

Portfolio Update September 2024

Before we end off September 2024, let me quickly take a snapshot of my investment portfolios. 

Despite the ongoing geopolitical tensions and economic uncertainties in the world, my overall portfolio value has continued to grow, reflecting the resilience of my long-term investment strategy.

My SGX Income Portfolio value has seen a steady increase to $399k from $384k driven by the recovery of local S-Reits benefiting from the interest rate cuts starting from Sep 2024.

My US/HK Growth Portfolio has also seen a positive performance, rising to US$18.8k from US$17.8k.

My SRS Ultra Long-Term Portfolio value has experienced a modest uptick to $183k from $182k.

Market Outlook 

The US stock market has continued its upward trajectory in a healthy bull run on the back of looming presidential election and higher certainty of a lower interest rate environment in the coming future. Nonetheless, there will still be immense volatility from the occasional noises and fears attributable to ongoing geopolitical conflicts, and concerns about a potential economic recession. Despite these challenges, I believe that long-term investors should remain calm and focused on our investment objectives.

Investment Strategy 

My investment strategy remains unchanged. I continue to prioritize high-quality income-producing instruments, such as government-backed risk-free bonds, property related assets, and strong profitable growth businesses. By carefully diversifying my portfolio and remaining disciplined, I aim to weather any market storms and achieve my long-term financial goals.

Portfolio Actions

1. Sold 2,000 shares of PLife Reit at $3.93 in SRS on 9 Sep.

Portfolio Dividends

1. Received $138 of dividends from Savings Bonds in SRS on 2 Sep.

2. Received $299.55 of dividends from Savings Bonds on 2 Sep.

3. Received $752.40 of dividends from Capitaland Ascendas Reit on 2 Sep.

4. Received $418 of dividends from MPACT in SRS on 12 Sep.

5. Received $515.36 of dividends from Mapletree Industrial Trust as 231 shares via DRP on 12 Sep.

6. Received $289.83 of dividends from Keppel Reit in SRS on 13 Sep

7. Received $438.66 of dividends from Mapletree Logistics Trust as 431 shares via DRP on 18 Sep.

8. Received $363.92 of dividends from Keppel DC Reit in SRS on 23 Sep

9. Received $794.50 of dividends from Aims Apac Reit on 25 Sep

10. Received $321.68 of dividends from Capitaland China Trust on 25 Sep

11. Received $1,004.87 of dividends from CICT on 26 Sep

12. Received $42 of dividends from OUE on 26 Sep

SGX Income Portfolio

Portfolio Value = $399k


US/HK Growth Portfolio

Moomoo

US$4.5k


Tiger Broker


US$13.2k


Syfe Trade

US$1.1k


Portfolio Value = US$18.8k

SRS Ultra Long-Term Portfolio

Portfolio Value = S$183k



Thanks for reading.

With love and peace, 
Qiongster

Saturday, September 28, 2024

Passive Income in Q3 and 9 months of 2024

 

Sep 2024 is ending soon and here is an update on my passive income for 3Q and the first 9 months of 2024.

From 1 Jul to 30 Sep 2024, I collected the following dividends.

$147.50 SSB (1 Jul) SRS
$320.73 SSB (1 Jul)
$239.88 Far East Orchard as 239 shares DRP (5 Jul)
$128.70 SSB (1 Aug)
$2,200.00 OCBC (23 Aug) SRS
$880.00 UOB (23 Aug)
$540.54 DBS (26 Aug)
$162.00 DBS (26 Aug) SRS
$303.97 IREIT (28 Aug)
$254.70 Ascott Reit (29 Aug)
$76.55 Suntec Reit (29 Aug)
$176.00 Comfortdelgro (29 Aug) SRS
$90.00 Wilmar (29 Aug) SRS
$150.80 Plife Reit (30 Aug) SRS
$138.00 SSB (2 Sep) SRS
$150.50 SSB (2 Sep)
$149.05 SSB (2 Sep)
$752.40 Ascendas Reit (2 Sep)
$418.00 MPACT (12 Sep)
$515.35 Mapletree Ind Trust (12 Sep) DRP
$289.83 Keppel Reit (13 Sep) SRS
$438.66 Mapletree Log Trust (18 Sep) DRP
$363.92 Keppel DC Reit (23 Sep) SRS
$794.50 Aims Apac Reit (25 Sep)
$321.68 Capitaland China Trust (25 Sep)
$1,004.87 CICT (26 Sep)
$42.00 OUE (26 Sep)

The total amount collected in Q3 2024 is $11,050.13, a 32% YoY increase from Q3 2023's $8,375.53.

Together with the $13,466.19 passive income in the first half of 2024, my passive income in the first 9 months of 2024 is

$24,516.32


On track of achieving my revised target of $28k passive income for 2024.

Time in the market beats timing the market. In the long-term, I am happy to remain primarily invested locally in SGX for passive income, while having a little exposure to US tech stocks for some growth. I may sell of my existing small holdings of HK shares after their recent resurgence.

My ultimate goal is to own an investment portfolio valued at one million dollars yielding at least $50k of passive income annually. Currently, I am at about half of the journey as my SGX income portfolio and SRS ultra long-term portfolios are valued at around $500K and dividends are projected to be around $25k or more for this year.

My motto is to live frugally, save up, invest in any bear or bull market conditions, slowly and steadily build up my investments in stocks, Reits and risk-free government bonds.

I look forward to collecting more dividends as passive income in the last quarter of 2024.

Thanks for reading. Stay focused and remain steadfast as always! Huat ah!

With love and peace, 
Qiongster

Sunday, September 22, 2024

The Illusion of Life: A Rat Race to Nowhere

 


I have been pondering about life, a tapestry woven with threads of joy, sorrow, and the relentless pursuit of meaning. We are often caught in a whirlwind of activities, chasing after the next big thing, yet feeling a profound sense of emptiness. What truly matters? Is life merely a rat race, a relentless struggle for survival and dominance?

The Illusion of Happiness

We are bombarded with messages that equate happiness with material possessions, fame, and success. We strive to gain more wealth and assets, excel at work to gain promotions, chase after the latest gadgets, compete to win in sports, fight to gain control of land and immerse ourselves in a world of superficial distractions. Yet, beneath the surface, a sense of discontent lingers. The pursuit of happiness often leads to a never-ending cycle of desire and dissatisfaction.

The Rat Race of Consumerism: People often feel compelled to keep up with the latest trends and possessions, believing that these will bring them happiness. Look at the queues in front of Apple stores to be the first to get hold of the latest iPhone 16. Months later, the queue will be for Samsung Galaxy 25 phones. Next year, it will be the same for iPhone 17. However, this can lead to a never-ending cycle of consumption and dissatisfaction.

The Illusion of Social Media: Social media platforms often present an idealized version of reality, leading our brains to compare ourselves to unrealistic standards and experience feelings of inadequacy. The curated nature of these platforms creates a false perception of perfection, contributing to unrealistic beauty standards and a fear of missing out. This can erode self-esteem, body image, and overall well-being. To avoid falling into the comparison trap, it is important to remember that social media is often a highlight reel and to focus on building a strong sense of self-worth.


The Survival of the Fittest

The concept of "survival of the fittest" has permeated our society. We're taught to compete, to outshine others, and to strive for dominance. From the corporate world to the sports arena, we're constantly vying for the top spot. However, this relentless competition often comes at a cost. It can lead to stress, anxiety, and a loss of connection with oneself and others.

The Competitive Corporate Culture: Many workplaces foster a highly competitive environment, where employees are constantly striving to outperform their colleagues. This can lead to a toxic work culture and a lack of work-life balance. Despite the benefits of remote work, which has become the norm since the pandemic, many companies are gradually abandoning this flexibility and autonomy, harkening back to traditional workplace models. Corporate giants like Amazon, Tesla, IBM, and Meta, driven by profit, often prioritize leveraging their human resources for business growth and WFH is being perceived as a sign of unproductivity by their shrewd business leaders. In today's capitalist society, physical presence and visible productivity, often manifested in office showboating, remain key performance indicators that make management feel good about their subordinates' work.

The Pressure to Succeed in Academia: Students are often pressured to achieve high grades and get into prestigious universities, which can lead to excessive stress and anxiety. In Singapore, the pressure to attend prestigious schools start from a young age, from attending branded infant school, kindergardens to prestigious primary schools, secondary schools and so on. All these toiling come to nothing because schools rarely impart entrepreneurial skills nor money making abilities to students as teachers are wage slaves trained to educate the next generation of slavers for the modern corporate world. 

The Intense Competition in Sports: The world of sports is often characterized by fierce competition, where athletes strive to be the best in their field. The competition attracts viewership and indirectly brings revenue and profits for the organisers or sponsors. Look at Formula 1, why do 20 driver drive 60 over laps for the past 15 years on Singapore's track? It is all about money from entertainment. Likewise, the same goes for soccer leagues, baseball and cricket leagues, racquet sports and recent Olympics and so on.


The Fear of Death

The fear of death is a universal human experience. It drives our actions, our desires, and our anxieties. We cling to life, desperately trying to avoid the inevitable. Yet, this fear can also limit our ability to live fully. It can prevent us from taking risks, embracing change, and experiencing the beauty of life.

The Fear of Failure: People often avoid taking risks or pursuing their dreams due to the fear of failure and the potential consequences.

The Desire for Immortality: Some people seek to achieve immortality through fame, wealth, or scientific advancements, driven by the fear of death.

The Impact of War: War can have a profound impact on people's lives, instilling fear, uncertainty, and a sense of mortality. The tragic loss of life in conflicts around the world serves as a constant reminder of our own mortality.


The Illusion of Control

We often believe that we have control over our lives. We make plans, set goals, and strive to shape our destiny. However, life is unpredictable. Unexpected events can derail our plans and shatter our illusions of control. It's important to embrace uncertainty and learn to adapt to change.

The Impact of Natural Disasters: Natural disasters can disrupt people's lives and challenge their sense of control. Look at the recent typhoons, hurricanes and earthquakes which bring damages to infrastructure and flooding in several Asian cities.

The Unexpected Loss of a Loved One: The death of a loved one can significantly alter a person's life and their perception of control. It can disrupt one's routine and raise existential questions on the fragility of life. The inability to prevent or reverse the loss can invoke feelings of helplessness and powerlessness.

The Uncertainty of the Future: The world is constantly changing, and it is impossible to predict what will happen next. This uncertainty can be both exciting and daunting.


Conclusion

Life is a complex and multifaceted experiential journey. It can be filled with both joy and sorrow, triumph and defeat. While we may strive for happiness, success, and control, we must also recognize the limitations of these pursuits. Ultimately, the meaning of life is a personal journey that each of us must discover for ourselves. By letting go of fear, embracing uncertainty, and connecting with our inner selves, we can find true fulfillment and meaning in our lives. Remember that we all will die one day so we should live our lives to the maximum without thinking about the meaning of lives.

Thank you all for reading!

With love and peace, 
Qiongster

Friday, September 20, 2024

Subscribed to CICT Preferential Offer Shares

 


The preferential offering by Capitaland Integrated Commercial Trust (CICT) to raise proceeds of around $757 million to fund the acquisition of 50% stake in Ion Orchard is ongoing and will close on 24 Sep 2024 9.30pm by ATM or earlier at 5.30pm by other means.

CICT is offering around 377 million shares to existing shareholders at a ratio of 56 preferential offer shares for every 1,000 existing shares at a price of $2.007.

The sponsor of the Reit, Capitaland Investment has irrevocably undertaken to subscribe their entitled preferential shares in full.

I find no compelling reason to not increase my investment in CICT which established itself as a pioneer in the retail Reit space before merging with Capitaland Commercial Trust in 2020, offering retail investors like us the unique opportunity to owning slices of Singapore's most iconic shopping malls including the likes of Raffles City, Westgate, Funan and top quality grade A commercial skyscrapers in the CBD such as CapitaGreen, Asia Square Tower 2, Capita Sky, and some other high quality commercial properties overseas such as Main Airport Centre in Frankfurt, Germany and 100 Arthur Street in Sydney, Australia. These diverse property types generate stable income streams over the years, making CICT a cornerstone in my income portfolio.

The acquisition of Ion Orchard further solidifes CICT's position as a leading Reit in Singapore. This prime shopping mall portfolio is a highly sought after destination for both locals and tourists contributing significantly to the Reit's income stream and asset under management.

As I own 18,506 shares of CICT, I am entitled to 1,036 preferential offer shares at $2.007.

As this is a slightly yield accretive fund raising project and at a yield of more than 5%, I intend to subscribe to 2,000 preferential offer shares, including excess and hope to get all if possible.

I decided to use the ATM to subscribe for the Preferential Offer Shares as using Paynow on CDP portal would also incur $2 transaction fee.

There it goes.

My investment in CICT is positioned for the long-term, at least the next decade, for passive income.

While the acquisition of Ion Orchard may primarily benefit CICT's sponsor, Capitaland Investment, the timing of the deal appears strategic. It coincides with a potential interest rate pivot and a stabilization of CICT's share price near its book value of $2.12.

Despite this positive backdrop, short-term market volatility remains a concern. CICT's share price could still be influenced by interest rate fluctuations and global economic news. However, I believe that the REIT's long-term prospects remain solid, supported by its diversified portfolio and proven track record.

If CICT's share price dips below $2 in the future, I am prepared to increase my holdings, as I view this as a potential buying opportunity. This confidence stems from my belief in the REIT's ability to navigate challenges and generate sustainable returns.

In the coming months, years and decade, I look forward to collecting more dividends from CICT perpetually effortlessly.

Thank you all for reading!

With love and peace, 
Qiongster

Sunday, September 15, 2024

Will Singapore Bank (DBS, OCBC, UOB) Shares Keep Rising?

 

The recent performance of Singapore's major banks has been impressive, with their shares hitting all-time highs. As at time of writing, DBS Group (SGX: D05) and Oversea-Chinese Banking Corporation (OCBC) both achieved record share prices, with DBS surpassing S$38 per share and OCBC reaching S$15.28. United Overseas Bank (UOB) also performed strongly, hitting an all-time high of S$32.64 during the same period.

The surge in share prices has been attributed to several factors, including high interest rates that boost net interest income, positive earnings reports, and investor optimism ahead of upcoming financial results. he overall performance of these banks has significantly contributed to the Straits Times Index (STI), which itself reached a one-year high, reflecting the banks' substantial market presence.

However, the question remains: will this upward trend continue? Several factors need to be considered, including dividend yield, payout ratio, and the potential impact of interest rate cuts.

Current Performance and Dividend Yield

Currently the dividend yields for Singapore's banks are notably attractive, ranging from approximately 5 to 6 %. Even at $38, DBS has a trailing dividend yield of 5.29%. After its run-up to $15.28, OCBC's dividend yield is at 5.63%. UOB at above $32 still can yield 5.3%. These yields are appealing to income-focused investors, especially in an increasingly probable lower interest-rate environment. Institutional investors and fund managers are also inclined to shift their funds from low-risk government-backed bonds, treasury bills and fixed income bonds to high yield yet fundamentally safe stocks of Singapore banks.

The banks have consistently increased their dividends, with payout ratios hovering between 50-55% of their earnings. This stability in dividend payments is a key factor that supports investor confidence and can help sustain share prices even if growth slows down.

Personally, I believe that as the yields of safe financial instruments such as Singapore Savings Bonds, T-Bills and fixed deposits continue to fall in the coming months, more funds will be shifted into Singapore local bank shares, further compressing their yields to closer to 4%. Hence, they may still be headroom for the bank shares to continue rising. At 4% yield, DBS will be priced at $54, OCBC at $22 and UOB at $44.

Payout ratios and Financial Health

As of recent reports, the payout ratios for Singapore's banks are generally between 50% and 55%. This range indicates a balanced approach to dividend distribution, allowing banks to reward shareholders while still retaining enough earnings to support future growth initiatives.

  • DBS Group: Historically, DBS has shown a strong commitment to dividends, with a payout ratio around 51% for its recent interim dividend. The bank has also demonstrated significant growth in its dividend payouts, with a compound annual growth rate (CAGR) of 9.3% over the past five years.
  • OCBC: OCBC has maintained a target payout ratio of approximately 50%. This disciplined approach allows OCBC to manage its capital effectively while providing consistent returns to shareholders. The bank's dividend payout has also seen a CAGR of 9.1% in recent years, showcasing its commitment to rewarding investors.
  • United Overseas Bank (UOB): UOB's payout ratio is similar, hovering around 55%. This reflects its strategy of balancing shareholder returns with the need for capital to support its growth initiatives, particularly in expanding its regional footprint.

The banks' consistent payout ratios signal financial stability, which is crucial for investor confidence, especially in uncertain economic conditions.

While high payout ratios such as REITs are appealing, they must be balanced with the need for capital to fund expansion and innovation. The Singapore banks have shown a strong ability to grow their earnings, which supports their dividend policies.

The recent high-interest rate environment has positively impacted the banks' profitability, allowing them to maintain and even increase dividends. However, potential interest rate cuts in the future could affect their net interest margins and, consequently, their ability to sustain high payout ratios. 

As the payout ratios of these local banks are rather conservative and sustainable, it should not be difficult for them to continue paying the same or even more dividends in a lower interest rate environment.

Interest Rate Cuts and their Impact

The outlook for interest rates is a pivotal factor influencing bank profitability. Following a period of high interest rates, there are expectations for potential cuts later in 2024. While high interest rates have bolstered net interest income—essentially the difference between what banks earn on loans and what they pay on deposits—any cuts could compress these margins. Analysts suggest that while the banks have benefited from elevated rates, the net interest margins (NIM) may have peaked.

The anticipated cuts could lead to a decrease in profitability, particularly if banks are unable to adjust their lending rates downward in tandem with deposit rates. However, the banks are also diversifying their revenue streams. For instance, non-interest income, particularly from fees related to wealth management and credit card transactions, is expected to grow, which could help offset any declines in net interest income.

Technical Analysis

DBS

DBS share price will face an immediate resistance at $38.38. Should it break through this resistance with volume, it may propel towards $40. Otherwise, it may consolidate above the $36 range above its 100, 50 and 20 days moving averages. There is strong immediate support at $35.55, which if breached will see it tank towards the $33 range, which is an attractive point where long-term investors could start nibbling shares of DBS.


OCBC

OCBC share price will face an immediate resistance at $15.33. Should it break through this resistance with volume, it may propel towards $16.50. Otherwise, it may consolidate above the $14.50 range above its 100, 50 and 20 days moving averages. There is strong immediate support at $14.25, which if breached will see it tank towards the $13.80 range, which is an attractive point where long-term investors could start nibbling shares of OCBC.


UOB

UOB share price will face an immediate resistance at $33.10. Should it break through this resistance with volume, it may propel towards $35. Otherwise, it may consolidate above the $31.20 range above its 100, 50 and 20 days moving averages. There is strong immediate support at $30.50, which if breached will see it tank towards the $29 range, which is an attractive point where long-term investors could start nibbling shares of UOB.



In summary, while Singapore bank shares have reached new heights, several factors will determine whether this momentum can be sustained. The attractive dividend yields and stable payout ratios provide a solid foundation for continued investment interest. However, the potential for interest rate cuts poses a significant risk to future profitability. As the banks adapt to changing market conditions and focus on diversifying their income, they may still offer growth opportunities, albeit at a potentially slower pace than in the recent past. Investors should closely monitor these developments to make informed decisions about our investments in Singapore's banking sector.

I am on the lookout for any correction or retracement of the bank share prices and may consider to start nibbling more shares of DBS at around $35, OCBC at around $13.80 and UOB at around $30.

Thank you for reading!

With love & peace,
Qiongster

Saturday, September 14, 2024

Net Worth Update September 2024 | SGD 1.71m Record High!


My net worth soars to a record high of S$1.715m in Sep 2024 fueled by the resurgence of S-Reits investments, CPF contributions, salary savings and dividends collected.

Net Worth Breakdown:

Safe Heavens (63%)

CPF (36%): A cornerstone of my financial strategy, CPF has been instrumental in constituting the foundation of my wealth. Attaining Full Retirement Sum FRS in 2022 was a great accomplishment.

Cash and war chest (15%): My liquid assets are strategically invested in fixed deposits and Fullerton cash funds, earning over 3% p.a. This provides a cushion for unexpected expenses while generating steady returns.

Bonds (11%): A balanced portfolio of low-risk Singapore Savings Bonds and Astrea bond ensures stability. I have maxed out my SSB individual limit of $200k last month, right before the yield of SSB falls below 3%.

Retirement Savings (13%)

SRS (8%): I have already contributed $15.3k for 2024, adding another layer to my retirement savings plan. My SRS funds are deployed into $30k of SSB and 6 local stocks - Comfortdelgro, DBS, OCBC, Keppel DC Reit, Keppel Reit and Wilmar.

Insurance (5%): I also own Prudential Pru-life multiplier whole life insurance plan and other savings plans which in total, could provide me with 6-digit lump sum payout after my retirement age.

Income and Growth Assets (25%)

Stocks and Reits (25%): This riskier portion of my portfolio caters for generation of passive cashflows and potential growth, with a focus on long-term compounding growth through dividend investing.

Achieving another net worth milestone is a testament to the power of consistent saving, disciplined investing, compounding growth and strategic financial planning. By diversifying across safe havens, retirement savings, and growth assets, I am trying to build a robust financial foundation. The ongoing contributions to CPF, coupled with the strong performance of my investments, have been key drivers of this growth.

Imagine reaching a net worth of S$1.7 million before the year end. It is a milestone I never thought I would achieve when I first started investing. As I look ahead, I remain committed to my long-term financial freedom aspiration and will continue to focus on maximizing returns while managing risks.

Thank you for reading!

With love & peace,
Qiongster

Monday, September 09, 2024

Sold Parkway Life Reit

 


Today, I sold my Parkway Life Reit shares from SRS account. This was a difficult decision for me, as I only started being a long-term investor in the REIT late last year

However, there are a few reasons why I believe that this was the right time to sell.

1. Valuation

Plife Reit is currently trading at more than 60% premium to its net asset value (NAV) of $2.34. This means that the REIT is valued higher than its underlying assets. I believe that the REIT is severely overvalued now and that there is a risk of a correction in the near future.

2. Interest Rate Compressed and Forex risks

Plife Reit is a defensive healthcare REIT having exposure to interest rate risk just like any other REITs. Outlook seems positive in light of expected interest rates cut in Sep 24 as well as aging population in Japan where it owns a large number of nursing healthcare properties. 

At a share price of $3.93 and projected annual dividend of $0.15, its dividend yield is compressed to merely 3.8%. If interest rates stay high for long, coupled with prolonged depreciation of yen, the cost of borrowing for the REIT will remain high and net property income will be suppressed. This could put pressure on the REIT's future distribution yield.

3. Opportunity Cost

I believe that there are better investment opportunities available in the market today. I can reinvest the proceeds from the sale of Plife Reit into other assets that I believe offer a better risk-return profile.

Plife Reit has just distributed the latest bi-annual dividend of $0.0754 and the next dividend will be in Feb 2025 which will be a few more months away.

I plan to consolidate and deploy my spare cash in SRS account into local bank shares such as DBS or OCBC, which I hope to see correction soon due to worries about their net income margin from interest rate cuts and mounting global recession fears.

Overall, I believe that selling Plife Reit at 3.93 was the right decision for me. While I am disappointed at my impatience to not sell it above $4 for more profits, I believe that it is important to take decent profits when they are available.

Thanks for reading.

With love & peace,
Qiongster

Sunday, September 08, 2024

What is more important than Money?


In the hustle and bustle of modern life, it's easy to become preoccupied with accumulating wealth. We're often told that money is the key to happiness, success, and security. However, as we delve deeper into the pursuit of riches, we may find ourselves neglecting other invaluable assets: time and freedom.

Time: A Non-Renewable Resource

Time is a unique resource. Unlike money, which can be earned, saved, or invested, time is finite. Once it's gone, it's gone forever. Yet, we often squander it on activities that don't bring us true fulfillment.

  • Prioritizing the Urgent Over the Important: We often find ourselves caught up in the daily grind, rushing from one task to the next. While it's essential to handle urgent matters, it's equally important to make time for what truly matters.
  • The Illusion of Endless Time: We often believe that we have plenty of time to pursue our passions, goals, and relationships. However, time flies by faster than we realize.
  • The Value of Present Moments: Instead of constantly worrying about the future or dwelling on the past, we should focus on savoring the present moment.

Freedom: The Cornerstone of a Fulfilling Life

Freedom is another essential element of a fulfilling life. It allows us to make choices, pursue our passions, and live authentically.

  • Financial Freedom: While money can provide a certain level of freedom, it's not the only factor. True financial freedom comes from having the ability to live life on your own terms, without being constrained by debt or financial worries.
  • Time Freedom: Having the freedom to choose how you spend your time is invaluable. It allows you to pursue hobbies, travel, spend time with loved ones, and engage in activities that bring you joy.
  • Personal Freedom: Personal freedom is about being true to yourself and living according to your values. It involves making choices that align with your beliefs and aspirations.

Finding Balance

While time and freedom are crucial, it's important to recognize that they are not mutually exclusive. It's possible to achieve a balance between financial stability and a fulfilling life.

  • Setting Priorities: Identify what truly matters to you and prioritize those things.
  • Creating a Budget: A well-crafted budget can help you manage your finances effectively and reduce stress.
  • Learning to Say No: Don't be afraid to say no to commitments that don't align with your priorities.
  • Taking Breaks: Schedule regular breaks and vacations to recharge and prevent burnout.
  • Cultivating Gratitude: Focusing on what you have, rather than what you lack, can help you appreciate the blessings in your life.

In conclusion, while money or wealth can provide certain benefits, it's essential to recognize the value of time and freedom. By prioritizing these invaluable assets, we can create a more fulfilling and meaningful life. Remember, true wealth lies not in material possessions, but in the experiences we have, the relationships we cherish, and the freedom to live life on our own terms. Last but not least, the embodiment of good health allows us to enjoy the wealth, free and time in life.

Thanks for reading.

With love & peace,
Qiongster

Friday, September 06, 2024

A Day of Record-Breaking Net Worth: The toil of Success


Have you ever experienced a day where the stars seemed to align perfectly, only to be thrown a curveball at the last minute? That's exactly what happened to me today. 

Today, I woke up on a seemingly chill Friday morning feeling a sense of anticipation. The SGX market had been performing well in the previous weeks, and I had a good feeling as I work from home with no meeting scheduled for the day. As I checked my portfolio, my heart raced. My S-REIT investments have surged strongly, and my net worth had surpassed my wildest expectations by reaching a staggering SGD 1.7 million while doing nothing but the celebration was short-lived.

Just as I was starting to feel a sense of accomplishment, I received a surprising request. My big boss asked me to do an ad hoc presentation in the office, in just 2 hours' time. Given that I was working from home, this was a significant challenge. I had to quickly gather and prepare my slides, get dressed, and commute to the office.

The unexpected presentation added an extra layer of stress to an already hectic day. I had to juggle preparing for the presentation and responding to other calls and work demands. With no time to eat lunch or go for tea breaks, I felt the strain on my body and mind. It was a demanding test of my time management skills and ability to remain calm under pressure.

Looking back, I've learned valuable lessons from this experience. First, it's important to maintain a healthy work-life balance, even during times of great success. Second, being prepared for unexpected challenges is essential. Having a contingency plan in place can help us navigate unforeseen circumstances with greater ease. Lastly, the importance of attaining financial freedom is greater than ever to gain an option to escape from the rat race.

Today my net worth hit a record high was undoubtedly a memorable one. It was a culmination of years of hard work, sacrifices discipline, frugality and strategic investing. However, the unexpected experience serve as a reminder that even in moments of triumph, life can throw us curveballs. By focusing on a healthy balance and being prepared for the unexpected, we can navigate both success and challenges with grit and resilience.

With love & peace,
Qiongster

Tuesday, September 03, 2024

CICT Acquires 50% stake in ION Orchard: A Strategic Move for Singapore's Retail Landscape. Opportunity or Boom for Shareholders?

 


CapitaLand Integrated Commercial Trust (CICT:C38U) has announced a strategic move in the Singapore retail market with its acquisition of a 50% stake in ION Orchard and its connecting underpass, Ion Orchard Link from its sponsor, Capitaland Investment (CLI: 9CI). This iconic 8-storey shopping mall, located in the heart of Orchard Road, is renowned for its luxury brands, high-end dining, and vibrant atmosphere. The acquisition marks a significant step for CICT, positioning it as a major player in the premium retail sector.



Understanding the Acquisition

The agreed property value for the 50% stake in ION Orchard is $1,848.5 million and the total acquisition outlay is around $1,101.3 million. CICT will be funding the acquisition through a combination of a $350 million private placement to institutional investors and a $757 million preferential offer to unitholders. 

The issue price is between $2.038 and $2.091 for each private placement unit and $2.007 for each non-renounceable preferential offer unit on the basis of 56 preferential offer units for every 1,000 units owned.

Expected Benefits

This is a yield accretive acquition keeping the Reit's leverage ration stable at 39.9%.

The proforma DPU accretion for the FY could be up to 1.2%.


Why is this Acquisition Significant?

  1. Strategic Location: ION Orchard's prime location in Orchard Road, Singapore's premier shopping district, ensures high foot traffic and strong demand for retail space.
  2. Diversified Portfolio: By adding ION Orchard to its portfolio, CICT can reduce its reliance on any single property or sector, mitigating risks.
  3. Synergies with Existing Properties: CICT can leverage its expertise to enhance ION Orchard's performance, potentially through optimized tenant mix, innovative marketing strategies, or operational efficiencies.
  4. Brand Enhancement: Associating with ION Orchard, a well-known and respected brand, can elevate CICT's own brand reputation and attract more tenants and visitors to its other properties.
Opportunities for Unitholders?

An advanced pro-rated dividend distribution of between $0.0211 and $0.0221 per unit has been announced to balance the books. The last day to qualify for this advanced dividend is on 9 Sep. There is opportunity to buy CICT from the market to qualify for the advanced dividend and preferential offer units before or on 9 Sep.

The subscription of preferential offer shares will commence on 16 Sep and end on 24 Sep. For unitholders who held on to their units at least until 9 Sep, they can apply for these preferential offer shares through the ATM, internet banking or if Paynow is supported from a given QR in the dispatched letter (this option potentially save a $2 admin fee).

As an existing CICT shareholder with 18,506 shares, I relish and welcome this opportunity to increase investment without incurring hefty brokerage and commission fees. I am entitled to 18,506 / 1000 * 56 = 1,036 preferential unit shares, at $2.007, amounting to $2,079.25. I plan to subscribe at least 1,500 shares in this preferential offering exercise to increase my investment in CICT above 20,000 shares.

Of course, I could have purchased additional CICT shares early this year when it was trading below $2 due to the unfavourable high interest environment but at that time, local bank shares were more attractive in terms of yield and growth then.

CICT's acquisition of a 50% stake in ION Orchard is a strategic move that positions the REIT for growth and success in Singapore's retail market. By leveraging the iconic mall's prime location, strong brand, and potential synergies, CICT can enhance its investment returns and contribute to the continued vibrancy of Orchard Road. I believe CICT is the top notch retail REIT which will continue to be a valuable income-producing asset to reward long-term investors in the years and decade to come.

Thanks for reading.

With love & peace,
Qiongster

Sunday, September 01, 2024

Live Poor to Be Rich: Frugality leads the Path to Financial Freedom

In a world often obsessed with material possessions and instant gratification, the concept of frugality can seem counter intuitive. Yet, the path to financial freedom often lies in the simple act of spending wisely. By embracing a frugal lifestyle, individuals can build wealth, reduce stress, and achieve long-term financial stability.

We can own a car in Singapore but do we really need a Mercedes or Tesla to flaunt our status, when there are lower cost alternatives such as Japanese brands, Toyota and Honda or Chinese brands, BYD and Omoda? Do we run or walk faster when we wear Nike, Adidas running shoes and sneakers instead of Decathlon or brandless shoes which cost just a fraction? Do we sleep better and more soundly when we live in a bungalow or condo penthouse instead of a 2-room or 3-room HDB? Is the $20 chicken rice in restaurants more nutritious and digest more efficiently by our bodies that the $5 one sold at coffeeshops?

Frugality is not about deprivation or sacrificing your quality of life. It's about making conscious decisions about how you spend your money. By prioritizing needs over wants and avoiding unnecessary expenses, you can significantly increase your savings and investment potential.

Key Strategies for Frugal Living

  1. Create a Budget: A detailed budget is the cornerstone of frugal living. Track your income and expenses to identify areas where you can cut back. Allocate fixed amounts for savings or investments and expenses based on your cashflows. Consider using budgeting apps or spreadsheets to simplify this process.
  2. Set Clear Financial Goals: Having well-defined financial goals can provide a sense of direction and motivation. Whether you're saving for a down payment on a home, building an emergency fund, or investing for retirement, having a clear purpose can help you stay focused.
  3. Cook at Home: Dining out at restaurants or even hawker centres can be expensive. By cooking at home more often, you can save money and enjoy healthier meals. Meal planning and batch cooking can also help you save time and reduce food waste. Adopting intermittent fasting regimes, going vegan or cutting down on meat consumption can also help to reduce expenses and possibly improve on health. 
  4. Shop Smart: Compare prices, look for sales, and use coupons to save money on purchases. Consider buying generic brands or store-brand products, which are often cheaper than name-brand alternatives. Shop online at e-commerce platforms such as Lazada, Shopee, Taobao or at factory outlets for clothes, shoes and apparels could be more cost effective than buying from physical stores.
  5. Reduce Energy Consumption: Conserving energy can significantly reduce your utility bills. Turn off lights when you leave a room, unplug electronics when not in use, and consider upgrading to energy-efficient appliances. Air conditioners are a good-to-have in our humid hot weather but as an alternative, 2 fans blowing left and right can do a good replacement job.
  6. Avoid Impulse Purchases: Before making a purchase, take a moment to consider whether you truly need it. Avoid impulse buys and stick to your budget.
  7. Limit Subscriptions and Memberships: Review your monthly subscriptions and memberships to see if there are any that you can cancel or reduce. Do we need a gym membership when we could actually do dumbbells and weights at home or even exercise statically free without any equipment?
  8. Find Free or Low-Cost Activities: There are plenty of free or low-cost activities to enjoy. Explore the parks, museums, beaches and libraries for entertainment options.
  9. Build an Emergency Fund: An emergency fund can provide a financial safety net and prevent you from going into debt. Aim to save at least three to six months' worth of living expenses.
  10. Invest Wisely: Once you've built an emergency fund stashing away cash, consider investing your spare savings. Research different investment options and choose strategies that align with your risk tolerance and financial goals.
Beyond the financial benefits, frugal living can also have a positive impact on your overall well-being. By reducing stress and anxiety related to money, you can enjoy a more peaceful and fulfilling life. Additionally, frugal practices such as having a minimalist mindset can contribute to a more sustainable future by reducing waste and conserving resources.

Frugality is not about deprivation or sacrificing your happiness. It's about making informed choices and prioritizing your long-term financial goals. We should not buy many things that we like or want but rather buy the few things which we really need. The whole idea is about extracting value from our purchases. By adopting a frugal lifestyle, you can build wealth, reduce stress, and achieve financial freedom. Remember, small changes can make a big difference over time.

Just some ranting on a sunny Sunday on the first day of September. Thanks for reading.

With love and peace, 
Qiongster